York Capital Management’s Multi-Strategy fund had a strong February, up 5.80 percent, the leading fund in its diversified fund offerings while the York Select fund in concentrated positions was best across the board with a 6.40% rise in net asset value, according to a letter to investors reviewed by ValueWalk.
York Capital’s holdings include names in the news
The value of York’s equity portfolio, as of the end of 2013, was $7.27 billion, up nearly $3 billion from the third quarter of 2013. The company’s largest positions include General Motors Company (NYSE:GM), W.R. Grace & Co. (NYSE:GRA), Hertz Global Holdings, Inc. (NYSE:HTZ), T-Mobile US Inc (NYSE:TMUS) and Air Products & Chemicals, Inc. (NYSE:APD).
York’s two automobile related shares, General Motors Company (NYSE:GM), where the fund is holding over 9 million shares valued at over $370 million, and Hertz, where it has over 11 million shares valued at over $270 million, could be most interesting to watch going forward.
York slightly reduced its General Motors holdings in the fourth quarter by nearly 7%. The firm has been embroiled in a safety recall that is testing the new CEO, Mary Barra. How she handles this crisis could set the tone for the stock price for years to come. General Motors Company (NYSE:GM) was basically flat throughout the month of February. In regards to Hertz, the firm was 8% higher today as it announced it would succumb to hedge fund pressure and spin off its car rental business.
In the fourth quarter, York significantly raised its stake in W.R. Grace & Co. (NYSE:GRA), adding 1.69 million shares to now control over 3.58 million shares, worth $3.54 million. W.R. Grace ended February in the mid $90s but has since bumped higher in March to crack the $100 per share level. The chemical company has recently emerged from bankruptcy filed in 2001 after it had historic asbestos claims levied against it.
York initiates T-Mobile holding in fourth quarter
Other notable York fourth quarter holdings include Adobe Systems Incorporated (NASDAQ:ADBE), American Airlines Group Inc (NASDAQ:AAL), BEAM Inc (NYSE:BEAM), CBRE Group Inc (NYSE:CBG), DISH Network Corp (NASDAQ:DISH), Hillshire Brands Co (NYSE:HSH), MGIC Investment Corp. (NYSE:MTG), Sothebys (NYSE:BID) and Sprint Corporation (NYSE:S), adding to its mobile phone exposure.
Total Return Fund
York Capital Management’s well known Total Return fund, with $1.8 billion under management, delivered nearly 3.9% to investors in February, and up near 5% year to date. The funds top holdings were in Lehman Brothers credit default swaps (CDS), Edison Mission Energy, American Airlines, Kaupthing Bank and Ageas T1. Its largest shorts are financial, sovereign and consumer discretionary CDS as well as consumer discretionary and financial equities.